The tax is part of a broader administration plan to cut corporate tax breaks and increase taxes on the country’s highest wage-earners to pay for projects to help the middle class.
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President Obama will on Monday give Congress his $4 trillion spending plan for fiscal 2016 that includes a request for billions of dollars in much-needed public works projects — an idea that has bipartisan support but little backing for the proposed tax increases to fund such efforts.
Obama will propose a six-year, $478 billion public-works program for highway, bridge and transit upgrades, with half of it to be financed with a one-time, 14 percent tax on U.S. companies’ overseas profits.
The tax would be due immediately. Under current law, those profits are subject only to federal taxes if they are returned, or repatriated, to the U.S., where they face a top rate of 35 percent. Many companies avoid U.S. taxes on those earnings by simply leaving them overseas.